Packaging Corporation of America reported net income of $203.8m, or $2.26 per share, in the first quarter (Q1) of fiscal year 2025 (FY 2025), a 38.7% increase from $146.9m posted in the Q1 of fiscal year 2024 (FY 2024).
Excluding special items, the paper and board producer posted net income of $208m, or $2.31 per share, in Q1 FY 2025.
For the first quarter ended 31 March 2025, its net sales rose to $2.14bn in Q1 2025 from $1.98bn in Q1 2024.
PCA stated: “Results were ten cents above first quarter guidance of $2.21 per share primarily due to higher prices and mix in the packaging segment.”
The segment saw total corrugated products shipments and shipments per day rise by 2.5% compared to Q1 2024.
Containerboard production reached 1.25 million tonnes during the quarter.
Inventory of containerboard was up 75,000t from a year earlier, but down 3,000t from the previous quarter.
In the paper segment, sales volume declined by 7% compared to Q1 2024. However, the segment saw a 2% increase in sales volume over the previous quarter.
PCA chairman and CEO Mark Kowlzan said: “A new first quarter revenue record was achieved to begin the new year.
“In the packaging segment, we had excellent implementation of our previously announced price increases and, although we began to see some pullback in the middle of the quarter related to the uncertainty created by global trade tensions, box demand was solid and exceeded a very strong comparative period in last year’s first quarter.
“Outstanding operational performance and scheduled outage execution at our mills delivered record first quarter containerboard production to meet this demand, and we ended the quarter at targeted inventory levels.
“Our paper segment continued to achieve impressive margins with both volume and prices slightly above original estimates. Across the company, continued emphasis on operational efficiency, cost reduction initiatives, and capital project execution helped minimise the persistent inflation we see throughout most of our cost structure.”
A producer of containerboard products and uncoated freesheet paper in North America, PCA operates eight mills and 85 corrugated products plants and associated facilities.
